Back to top

Image: Bigstock

Can Solid Sales Endeavors Fuel Nu Skin (NUS) Q1 Earnings?

Read MoreHide Full Article

Nu Skin Enterprises, Inc. (NUS - Free Report) is slated to release first-quarter 2018 results on Apr 26. This beauty products company has surpassed earnings estimates in three out of the past four quarters. Let’s see if Nu Skin’s growth drivers can help it maintain its impressive record this time as well.

 

Factors Driving the Quarter

We expect Nu Skin to continue gaining from its efforts to strengthen customer base and drive sales. To this end, the company has been focused on developing its social media activities, in order to help sales leaders target new customers. Nu Skin remains committed toward undertaking technological advancements to support sales leaders’ initiatives. Moreover, Nu Skin is on track with its product strategy, as evident from the successful preview of LumiSpa last year, which made solid contributions to sales across most markets in the last quarter.

Region-wise, prospects from China look encouraging – given customers’ favorable response to Nu Skin’s incentives and the growth in sales leaders. Management remains hopeful about customer growth in China, and expects LumiSpa’s rollout, innovative programs and constant promotional activities to drive results in this region in 2018, which gives positive signals for the quarter under review. Further, Americas, South Asia Pacific and EMEA are expected to deliver favorable results, given the effective social selling strategy along with management’s other growth endeavors.

Expectations in Numbers

For the first quarter, management anticipates revenues to grow 10-14% to $550-$570 million. This also includes a favorable currency impact of 4-5%. Further, Nu Skin envisions earnings for the quarter to range 65-70 cents per share, which includes a provisional tax rate projection of 40-42%.

Well, the Zacks analysts expect earnings for the quarter to surge 33.3% year over year to 68 cents. Notably, the estimate has gone up by a notch over the past seven days. Moreover, the Zacks Consensus Estimate for revenues is $563 million, up from $499 million recorded in the year-ago period.

What the Zacks Model Unveils

However, our proven model doesn’t show that Nu Skin is likely to beat bottom-line estimates this quarter. For this to happen, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

While Nu Skin carries a Zacks Rank #3, its Earnings ESP of 0.00% make surprise prediction difficult.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post earnings beat:

Boston Beer (SAM - Free Report) , a Zacks #3 Ranked stock, has an Earnings ESP of +35.65%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ManpowerGroup (MAN - Free Report) , a #3 Ranked company, has an Earnings ESP of +5.67%.

Wynn Resorts (WYNN - Free Report) has an Earnings ESP of +5.45% and a Zacks Rank of 3.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Published in